ALDEYRA THERAPEUTICS, INC. (NASDAQ:ALDX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

On January29, 2019, Aldeyra Therapeutics, Inc. (the “Company”), announced that it entered into an Agreement and Plan of Merger dated as of January24, 2019 (the “Merger Agreement”) by and among the Company, Helio Vision, Inc., a Delaware corporation (“Helio”), Halo Merger Sub, Inc. a Delaware corporation and a wholly-owned subsidiary of the Company (“Merger Sub 1”) and Halo Merger Sub, LLC., a Delaware limited liability company and a wholly-owned subsidiary of the Company (“Merger Sub 2”) and a securityholder’s representative. to the Merger Agreement, at the closing on January28, 2019, the Company acquired Helio, a privately-held biotechnology company developing a therapy for proliferative vitreoretinopathy (“PVR”), a rare inflammatory fibroproliferative disorder that leads to severe retinal scarring and blindness, and is the leading cause of failure of retinal reattachment surgery.

to the terms and conditions of the Merger Agreement, Merger Sub 1 merged with and into Helio, with Helio being the surviving corporation, and Helio as the surviving corporation then merged with and into Merger Sub 2, with Merger Sub 2 being the final surviving company and a wholly-owned subsidiary of the Company (the “Merger”). At the effective time of the Merger, each outstanding share of common stock and preferred stock of Helio was cancelled and became entitled to receive a portion of the Merger Consideration (defined below).

As a result of the Merger, the Company will initially issue an aggregate of 1,150,990 shares of its common stock, par value $0.001 per share (the “Common Stock”), to the former securityholders and an advisor of Helio (the “Closing Consideration”). In addition, the Company, subject to the conditions of the Merger Agreement, will be obligated to make additional payments to the former securityholders of Helio as follows: (a) $2,500,000 of Common Stock on the date that is 24 months following the Closing Date (as defined in the Merger Agreement), (b) $10,000,000 of Common Stock following approval by the U.S. Food and Drug Administration of a new drug approval application (“NDA Approval”) for the prevention and/or treatment of proliferative vitreoretinopathy or a substantially similar label (“PVR”) prior to the 10th anniversary of the Closing Date, and (c) $2,500,000 of Common Stock following NDA Approval of an indication (other than PVR) prior to the 12^th anniversary of the Closing Date (such payments, in the aggregate, the “Milestone Consideration,” and together with the Closing Consideration, the “Merger Consideration”), provided that the aggregate Merger Consideration shall not exceed $25,000,000 and in no event shall the Company be obligated to issue more than 5,248,885 shares of Common Stock. The number of shares of Common Stock to be issued with respect to the Milestone Consideration will be determined based on volume weighted average trading price of the Common Stock on The Nasdaq Capital Market at the time of such issuance as set forth in the Merger Agreement. The Company agreed to use commercially reasonably efforts to develop and obtain regulatory approval for the Helio product candidate. In the event of the Company’s breach of such covenant, subject to the terms and conditions of the Merger Agreement, the Helio product candidate and related intellectual property rights may revert back to an entity designated by the securityholder’s representative.

Additionally, in the event of certain change of control or divestitures by the Company, certain former convertible noteholders of Helio will be entitled to a tax gross-up payment in an amount not to exceed $1,000,000 in the aggregate.

The Merger Agreement contains customary representations, warranties, covenants and indemnities of each of the Company and Helio.

The representations, warranties and covenants contained in the Merger Agreement were made only for the purposes of the Merger Agreement, were made as of specific dates, were made solely for the benefit of the parties to the Merger Agreement and may not have been intended to be statements of fact but, rather, as a method of allocating risk and governing the contractual rights and relationships among the parties to the Merger Agreement. The assertions embodied in those representations and warranties may be subject to important qualifications and limitations agreed to by the Company and Helio in connection with negotiating their respective terms, including information contained in confidential schedules that the parties exchanged in connection with signing the Merger Agreement. Moreover, the representations and warranties may be subject to a contractual standard of materiality that may be different from what may be viewed as material to stockholders of the Company. For the foregoing reasons, none of the Company’s stockholders or any other person should rely on such representations and warranties, or any characterizations thereof, as statements of factual information at the time they were made or otherwise.

The foregoing description of the Merger Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Merger Agreement, which is filed as Exhibit 2.1 hereto and is incorporated herein by reference.

Item 1.01. COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS.

The information set forth above in Item 1.01 of this Current Report on Form 8-K is incorporated into this Item 1.01 by reference.

The shares of Common Stock issuable to the Merger Agreement as Merger Consideration will be issued in reliance on an exemption from registration provided by Section4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), or Regulation D promulgated thereunder, as a transaction by an issuer not involving a public offering.

The information contained in Item 1.01 of this Current Report on Form 8-K is incorporated into this Item 1.01 by reference.

Item 1.01 OTHER EVENTS.

On January29, 2019, the Company issued a press release announcing the closing of the Merger. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

Item 1.01. FINANCIAL STATEMENTS AND EXHIBITS.

(a)(1) and (b)(1) Financial Statements.

to Item 1.01(a)(1) and (b)(1) and the requirements of Regulation S-X, the Company will determine the significance of the Merger in relation to the Company’s 2018 financial results to be included in the Company’s Annual Report on Form 10-K for the year ended December31, 2018 and will file financial statements and pro forma financial information for the Merger by amendment to this Current Report on Form 8-K, if required.

(d)Exhibits.

* The schedules and exhibits to the Agreement and Plan of Merger have been omitted from this filing to Item 601(b)(2) of Regulation S-K under the Securities Act. The Company agrees to furnish as a supplement a copy of any omitted schedules or exhibits to the Agreement and Plan of Merger to the Securities and Exchange Commission upon request, provided that the Company may request confidential treatment for any schedule or exhibit so furnished.

Aldeyra Therapeutics, Inc. Exhibit
EX-2.1 2 d697013dex21.htm EX-2.1 EX-2.1 Exhibit 2.1 EXECUTION VERSION AGREEMENT AND PLAN OF MERGER by and among ALDEYRA THERAPEUTICS,…
To view the full exhibit click here

About ALDEYRA THERAPEUTICS, INC. (NASDAQ:ALDX)

Aldeyra Therapeutics, Inc., formerly Aldexa Therapeutics, Inc., is a biotechnology company. The Company’s principal activities include raising capital and research and development activities. The Company’s segment is the identification and development of a treatment for diseases related to high levels of aldehydes. The Company is focused on the development of products for diseases caused by inflammation and inborn errors of metabolism that are caused by naturally occurring toxic and pro-inflammatory chemical species known as aldehydes. The Company has developed a series of aldehyde traps, molecules that are designed to sequester and allow for the degradation of aldehydes. The Company’s aldehyde trap, NS2, is a product candidate that is under development for the treatment of allergic conjunctivitis and related rare allergic ocular diseases, noninfectious anterior uveitis, sjogren-larsson syndrome (SLS) and succinic semi-aldehyde dehydrogenase deficiency.